Question

Curtis Hindle purchased a mountain bike for $650.00 with 75% down. He will make 12 payments of $24.38 each. What is the total amount paid (including down payment) and finance charge in dollars?
The total paid (including down payment) is $

The finance charge in dollars is $

Answer 1

Answer:

The total amount paid = $780.06.

The finance charge = $130.06

Step-by-step explanation:

We have been given that Curtis Hindle purchased a mountain bike for $650.00 with 75% down. He will also make 12 payments of $24.38 each.

First of all let us find the amount of down payment paid by Curtis Hindle by calculating 75% of $650.

$\text{Amount of down payment}=\frac{75}{100}\times \ 650$

$\text{Amount of down payment}=0.75\times \ 650$

$\text{Amount of down payment}=\ 487.5$

Now let us find the amount paid for 12 payments by multiplying 12 by $24.38.

$\text{Amount of 12 monthly payments}=12\times \ 24.38$

$\text{Amount of 12 monthly payments}=\ 292.56$

To find the total amount paid by Curtis we will add the amounts paid for down payment and 12 monthly payments.

$\text{Total amount paid by Curtis Hindle}=\ 487.5+\ 292.56$

$\text{Total amount paid by Curtis Hindle}=\ 780.06$

Therefore, the total amount paid by Curtis Hindle is $780.06.

To find the amount of finance charges we will subtract the cost of bike from total amount paid.

$\text{The amount of finance charge}=\ 780.06-\ 650$

$\text{The amount of finance charge}=\ 130.06$

Therefore, the finance charges is $130.06.

Answer 2

The total paid (including down payment) is
650×0.75+24.38×12=780.06
The finance charge in dollars is
780.06−650=130.06